TelstraClear poised for push into Auckland

Steve Jackson says the lack of an adequate fibre network has kept TelstraClear from making an impact in the Auckland market. Photo / Paul Estcourt

Steve Jackson is readying himself for an assault on Auckland.

TelstraClear's head of consumer - the division responsible for providing telco services to residential users - admits the Australian-owned phone company has struggled to make an impact in the Auckland market.

"Auckland is our big challenge. It's more competitive, we don't have a network and so far, we've been less successful in Auckland," said Jackson.

High-speed broadband, specifically the Government-backed fibre network, is critical for TelstraClear to boost its profile among the million-plus Aucklanders.

In Wellington and Christchurch, TelstraClear owns a hybrid fibre coaxial network which it uses to provide cable television services and high-speed broadband capable of speeds up to 25 megabits per second.

As a result it has grabbed around 50 per cent of the market in both cities.

"As soon as we can bring television [to Auckland] we could clean up," said Jackson.

"Fibre would ensure we could do it. Other technologies give us possibilities to do it in certain geographic areas."

The renewed vigour of TelstraClear's consumer business is a far cry from nearly five years ago when chief executive Allan Freeth took the reins from Rosemary Howard.

"When Allan joined consumer was the poor relation in the business," said Jackson.

"There were some real strategic questions about whether we should be in aspects of the business at all."

Jackson said revenue growth had ground to a standstill, profitability was falling and the company's huge investment in cable networks was being under-utilised.

Since then the consumer division has doubled revenue and now accounts for 40 per cent of the company's total $700 million in revenue.

The key to the turnaround was to focus on its profitable, on-net customers in Wellington and Christchurch, taking the marketing local with campaigns on bus shelters and buses rather than nationwide TV ads.

It's a similar strategy to what will be used in Auckland.

Jackson is a veteran of 10 years at TelstraClear, originally working for Clear Communications when he emigrated to New Zealand from the United Kingdom with his young family 11 years ago.

Jackson became part of the senior management team at TelstraClear, responsible for residential and small business sales, under Australian boss Howard.

A UK chartered accountant - "I hated that from day one" - Jackson admits to being a gadget man and more interested in mass marketing to consumers than big business.

The closer links with parent Telstra announced last year may give Jackson a few more gadgets to play with.

"In future I think you'll see more and more alignment with Telstra's products and services, particularly around broadband and mobile applications," said Jackson.

Possibilities include the T-Hub, a touchscreen device offering regular phone features and internet access, the ability to play music, look at videos and photos and run a household diary.

The different market positions - Telstra is Australia's Telecom equivalent - and technologies are reasons Jackson gives for why the two companies haven't worked together in the consumer sector in the past.

Later this month TelstraClear will be launching a new MySky-like PVR device for its InHome customers - those on the cable networks in Wellington and Christchurch.

The vision, said Jackson, is to then roll out the new boxes when and where TelstraClear can become a customer on the yet-to-be-built ultrafast fibre broadband networks.

Where it can't access high-speed networks TelstraClear will launch a trimmed down set-top box with free-to-air channel functionality and some broadband capability included.

"Customers will see it as TelstraClear Media Services or whatever. It will be a national play but a slightly different derivative depending on where you are," Jackson said.

With Auckland likely to be among the first to benefit from the Government's billion-dollar fibre broadband network, local consumers could be next in line for the TelstraClear PVR.

STEVE JACKSON
* TelstraClear head of consumer.
* Age 51.
* Married with two sons, 14 and 16.
* BA Hons in Economics from Leeds University, fellow of the UK Institute of Chartered Accountants.
* Drummer in a punk band, Phallic Alec and the Foreskins, while at university in Leeds. Still owns a drum kit but now a regular concert goer.
* Leeds United fan.
* Commutes to work on a 2.3 litre Triumph motorcycle bought to celebrate his 50th birthday.
* Fancies a second career as a photographer when retired from telcos.